Under pressure from geopolitical tensions, HP is forced to reduce its production in China. However, the PC manufacturer does not want to withdraw from China completely.

According to Nikkei Asia, HP is preparing an “aggressive shift in production” from China. Until last year, most of its PC production took place in China. The PC manufacturer decided to (partially) shift production last year. Nikkei Asia claims that HP eventually wants to place seventy percent of its production outside of China. The reason for this decision is geopolitical tensions between the US, but also between China and Taiwan.

Ernest Nicolas, Chief Supply Chain Officer, reacts to this news in a blog. He confirms that HP is seeking to diversify its production line without fluctuating with percentages. By adding new production sites, HP can reduce the risk of “natural or geopolitical challenges”. This does not mean that HP wants to withdraw completely from China, adds Nicolas.

“Our teams in China are and will remain one of our most important manufacturing, engineering and innovation centers. With its advanced infrastructure and pipeline of manufacturing talent, China can serve as a benchmark for the manufacturing our global network aspires to,” the blog said.

From Mexico to Thailand

With China no longer the promised land, HP is now expanding its production around the world. Production of business notebooks has largely been moved to Mexico. Consumer devices will continue to be produced largely in Asia. HP has a large factory in Thailand and has recently started production lines in Vietnam and India. The company wants to further expand its capacity in Thailand and set up a design center in Singapore as a “backup” for the team in Taiwan.